Overview
Since the Report − 27.2%
Revenue grew 1,230.0% year over year, EPS missed the estimate by 90.0%; the stock fell 7.0% in its first reaction.
- RevenueQ2
- $83.8M
- ▲ 1,230% YoY
- EPSGAAP
- −$0.19
- Est. −0.09 · Missed
Verdict
BUYOndas grew Q2 revenue more than 13-fold to a record $83.8 million, beat expectations by roughly 21% and raised its full-year target to $525-550 million from about $375 million. Despite record results and a $757 million backlog, shares fell 7%: GAAP loss missed, gross margin compressed to 43%, and investors took profits after a roughly 40% one-month run-up. The key question now is how fast defense orders convert into revenue and whether margins recover.
Close on Report DayAug 13
$9.09▼ 7.0%Report-Day Move
- Market Cap(Today)
- ≈ $3.85 B
- 1Y Return(At Report)
- + 161%
- Net Margin(Trailing 12M)
- 96.3%
Earnings Summary
In 30 Seconds- Revenue rose more than thirteen-fold year over year to a record $83.8M, beating the $69.3M estimate by about 21%.
- Full-year revenue guidance was raised from $375M to $525-550M, and pro forma backlog reached $757M.
- The stock fell about 7% on the day as the GAAP loss missed estimates and gross margin narrowed to 43.1%.
The Numbers
Backlog
$757M
Pro Forma · +11x
New Orders
$175M
Booked in Quarter
Cash & Investments
$1.4B
Strong Balance Sheet
Adjusted EBITDA
−$50.6M
Loss Continues
Quarterly Revenue ($ Million)
6.27
Q2 25 · $6.27 M
10.10
Q3 25 · $10.1 M · QoQ + 61.1%
30.10
Q4 25 · $30.1 M · QoQ + 198.0%
50.10
Q1 26 · $50.1 M · QoQ + 66.4%
83.80
Q2 26 · $83.8 M · QoQ + 67.3% · YoY + 1,236.5%
140–155
Q3 26E · 140–155 · QoQ + 76.0% · YoY + 1,360.4%
- Q2 25
- Q3 25
- Q4 25
- Q1 26
- Q2 26
- Q3 26E
Q3 2026 Company Guidance
- Q3 Revenue140 – 155 M140 M155 M
Midpoint 147.5 · Prior Quarter $83.8MQoQ ▲ 76%
- Full-Year Revenue525 – 550 M525 M550 M
Prior Target ~$375MRaised 43.3% ▲
How to Read the Chart
The blue band is the company's low-high range; its length shows how much room the company left itself. The black triangle and the line beneath it mark where the market expected, and the notch in the band is the range's midpoint. The triangle appears only where a market expectation is known. When the company gave a single number rather than a range and no market expectation is known, that row gets no band at all: there is no length to measure and no position to compare. Axis is ±5.8% around the midpoint.
Company-Specific Metrics
Reported Backlog
$613 M
Press Release
New Orders in Quarter
$175 M
Press Release
Adjusted Gross Margin
50.4%
Press Release
Adjusted EBITDA
− $50.6 M
Press Release
Metrics come only from the company's own filings; each one names the document it was taken from.
“Our team at Ondas is performing at a high level, as evidenced by our record second-quarter results.”
- Record Quarterly Revenue
- Defense Platform Scaling
- Backlog Growing Rapidly
Summary and Review
Summary
Ondas's Q2 revenue climbed more than 13-fold from $6.3 million to a record $83.8 million. That is up 67% sequentially and roughly 21% above the $69.3 million expectation. Full-year guidance rose to $525-550 million from about $375 million; Q3 guidance is $140-155 million. Pro forma backlog reached $757 million; $175 million of new orders were booked. Against that, GAAP loss per share of $0.19 missed the $0.09 loss expected. Net loss was $89.7 million; gross margin was 43.1%.
Despite record revenue and a raised outlook, the stock fell about 7%. Three factors drove the selloff, not weak results. EPS missed, and gross margin narrowed from 53.1% to 43.1% year over year. Shares had also climbed 40% in the month into earnings. At roughly 40 times revenue and high forward multiples, even a strong report was vulnerable to a 'sell the news' reaction. Weighted-average shares also rose to 503.6 million; that growth-funding dilution weighs on per-share values.
The quarter itself was operationally strong: revenue beat, guidance was raised sharply, and the defense/drone backlog exploded. We therefore view the quarter positively: score 78, 'buy' read. That is not a recommendation at today's price; it is the reported quarter's scorecard. Three things to watch: gross margin recovery, the $50.6 million adjusted-EBITDA loss and cash burn, and how fast the $757 million backlog converts to revenue. Because the valuation is high, even small misses can drive sharp price moves.
Full Review
Revenue grew 13-fold and beat estimates.
Q2 revenue set a record at $83.8 million, more than 13 times the $6.3 million of a year ago and 67% above the prior quarter. More importantly, it topped the $69.3 million market expectation by roughly 21%, so growth was not just fast but faster than forecast. Management frames this not as a one-off spike but as durable scaling of demand for defense and autonomous systems. Manufacturing footprint expanded from 10,000 to 230,000 square feet, and the sales team grew from 10 to 171 people. Operations span 60 countries, and headcount reached 1,700. Such rapid capacity expansion is a strong signal that revenue should keep rising in coming quarters. Still, the operational and financial cost of sustaining this pace shows up in the margin and cash sections below.
The backlog is the real story.
Ondas's most striking figure is a pro forma backlog of $757 million. That is more than 11-fold growth versus the prior-year fourth quarter and 66% sequential growth. Reported backlog is $613 million; the gap comes from the acquired DZYNE and Cyberhawk businesses. Geographically, Europe leads by far at $407 million. Asia-Pacific and other regions follow at $187 million, the U.S. and Canada at $155 million, and the Middle East at $8 million. New orders of $175 million were booked in the quarter. Through August 10 in the third quarter, another $105 million was recorded. That includes a $50 million border demining program and a $68 million military purchase order. This backlog is the most concrete support for multi-year revenue visibility. The key question is how quickly, and at what margin, these orders convert into deliveries and revenue.
Margins narrowed, losses are large.
The shadow side of the story is profitability. Gross margin fell to 43.1%, down from 53.1% a year ago and 49.2% last quarter. Adjusted gross margin looks better at 50.4%, but the direction is down. GAAP net loss was $89.7 million and operating loss was $162.9 million. Net loss being smaller than operating loss points to some non-operating gains. Adjusted EBITDA is still a $50.6 million loss, meaning the company is scaling but not yet generating cash. The $1.4 billion in cash and investments on the balance sheet is a strong buffer against that burn. GAAP loss per share of $0.19 missed the expected $0.09 loss. That miss was the most concrete trigger for the selloff despite strong revenue. The rise in weighted-average shares to 503.6 million adds further pressure on per-share values.
Guidance was raised substantially.
Management lifted the full-year 2026 revenue target to $525-550 million from about $375 million. That implies more than 10-fold growth over 2025's roughly $50.7 million. The $140-155 million third-quarter range implies about 76% growth versus the second quarter's midpoint. The company's full-year revenue mix outlook shows which work is leading: precision strike 38%, ISR and persistent intelligence 28%, autonomous ground systems 19%, and aerial security 15%. Such an aggressive upward revision builds confidence that demand is real and the backlog is deliverable. But the higher the guidance, the sharper the stock impact of any small shortfall in execution.
Why the stock fell.
Short answer: the good news was already in the price. The stock had risen 40% in the month before earnings, reaching roughly 40 times revenue and a forward P/E in the 60s. At that valuation the market wanted not just a 'good' quarter but a 'flawless' one. Revenue and guidance were near flawless; the EPS miss and margin compression were enough excuse to take profits. Shares tested below $9 intraday, then recovered part of the loss to close down about 7%. The stock's average post-earnings reaction over the last seven reports is about minus 8%, showing such 'sell the news' moves are typical for ONDS. The real message for investors was that the quarter was not weak; expectations were simply very high. Two lines to check in the November Q3 report: whether revenue lands inside the $140-155 million target and whether gross margin recovers from 43.1%.
Looking Ahead
Strengths and Risks
5 Strengths · 5 RisksStrengths
5- Revenue grew more than 13-fold year over year to a record $83.8 million, beating the $69.3 million expectation by roughly 21%.
- Pro forma backlog reached $757 millionMore than 11-fold annual growth means strong revenue visibility.
- Full-year revenue target raised to $525-550 million from about $375 millionA strong upward revision.
- The balance sheet holds $1.4 billion in cash and investments, a solid liquidity buffer to fund growth.
- $175 million of new orders in the quarter and $105 million more through August 10 in Q3Demand momentum continues.
Risks
5- Gross margin fell from 53.1% to 43.1% year over yearGrowth is coming at the expense of profitability.
- The company remains deeply unprofitableAdjusted EBITDA is a $50.6 million loss and cash burn continues.
- Weighted-average share count rose to 503.6 millionDilution funding rapid growth pressures per-share values.
- Valuation is high at about 40 times revenue, turning even the smallest miss versus expectations into sharp price moves.
- Scaling manufacturing from 10,000 to 230,000 square feet carries meaningful execution riskDelivery slips would undercut guidance.
What to Watch
4- Q3 2026 earnings (~November 2026)Whether the $140-155 million revenue target holds.
- The pace of backlog-to-revenue conversion and delivery margins will be watched.
- Whether gross margin recovers will be a critical data point for the profitability path.
- Cash burn rate and how long the $1.4 billion in cash lasts will be tracked.
Upcoming Earnings
To Understand This